Beijing May Prioritize Consumers in the Year of the Horse: Strategies to Consider.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 15 2026
0mins
Source: Barron's
- Economic Outlook: As China enters the Year of the Fire Horse, there is an expectation of a lower official economic growth target from Beijing.
- Focus Shift: The Chinese government is anticipated to prioritize reviving consumer confidence and spending over previous economic strategies.
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Analyst Views on LLY
Wall Street analysts forecast LLY stock price to rise
20 Analyst Rating
18 Buy
2 Hold
0 Sell
Strong Buy
Current: 1041.650
Low
950.00
Averages
1192
High
1500
Current: 1041.650
Low
950.00
Averages
1192
High
1500
About LLY
Eli Lilly and Company is a medicine company, which discovers, develops, manufactures, and market products in a single business segment called human pharmaceutical products. The Company manufacture and distribute its products through facilities in the United States, including Puerto Rico, and in Europe and Asia. The Company’s products are sold in approximately 90 countries. Its Cardiometabolic Health products Basaglar; Humalog, Humalog Mix 75/25, Humalog U-100, Humalog U-200, Humalog Mix 50/50, insulin lispro, and others; Humulin, Humulin 70/30, and others; Jardiance; Mounjaro; Trulicity; Zepbound, and others. Its oncology products include Cyramza, Erbitux, Tyvyt, Verzenio, Retevmo, Jaypirca, and others. Its immunology products include Ebglyss, Olumiant, Omvoh, and Taltz. Its neuroscience products include Emgality and Kisunla. Its LillyDirect, a direct-to-patient digital health care platform, provides delivery of select Lilly medicines dispensed by third-party pharmacies to patients.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Long-term Effectiveness: Among 35 participants, the LDL-C reduction from VERVE-102 was sustained for up to 18 months post-treatment, suggesting that the drug may offer durable cardiovascular protection, addressing the urgent need for new therapies.
- FDA Fast Track Designation: VERVE-102 has received Fast Track designation from the FDA, aimed at providing new treatment options for patients with hyperlipidemia and high cardiovascular risk, highlighting its potential market value and significance.
- Future Research Plans: Lilly plans to initiate the Phase 2 clinical study by the end of this year to further validate the safety and efficacy of VERVE-102, potentially transforming cardiovascular care from chronic management to a one-time treatment.
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- Viking Therapeutics Progress: Viking Therapeutics is conducting phase 3 trials for VK-2735, with promising early results suggesting it could carve out a niche in the weight loss market, and strong data could drive the stock price higher again.
- AbbVie's New Strategy: AbbVie is studying a long-acting amylin analog, with early trials showing weight loss of 7% to 9%, which could add significant growth potential to its product portfolio if successful.
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- Gene Editing Breakthrough: Eli Lilly's release of Phase 1b trial data for Verve-102 shows a 62% reduction in LDL cholesterol at the highest dose among 35 participants, with effects lasting up to 18 months, marking a significant advancement in gene editing treatments for cardiovascular diseases and potentially transforming treatment paradigms while enhancing the company's competitive edge in this market.
- Obesity Drug Market Leadership: Lilly's Mounjaro has emerged as a standout in the rapidly growing GLP-1 drug category, with projected sales exceeding $100 billion in 2023, further solidifying the company's leadership position in obesity treatment and laying a strong foundation for future revenue growth.
- Analyst Ratings Optimistic: With a 'Strong Buy' consensus from 31 analysts and an average price target of $1,211, indicating approximately 13% upside from current levels, the market reflects strong confidence in the company's growth potential moving forward.
- Technical Analysis: Eli Lilly's stock is just 6.5% below its all-time high from November 2025 and has formed a golden cross, indicating strong upward momentum; despite a price-to-earnings ratio of 28, which is above the industry average, it remains a favored choice among investors, showcasing optimism about its future performance.
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- Dramatic Stock Price Decline: Viking's stock price has plummeted from nearly $100 to below $30, reflecting investor pessimism regarding its future prospects, particularly in light of stronger competitors entering the market.
- Cash Burn Risks: With approximately $603 million in cash on hand but burning through about $114 million per quarter, Viking may face dilution risks if it fails to raise additional funds soon, further undermining investor confidence.
- Slow Clinical Progress: Although VK2735 remains in clinical trials, competitors are advancing in drug development, potentially placing Viking at a disadvantage in the market and affecting its long-term growth potential.
See More
Positive Phase 1b Results for VERVE-102 in Cardiovascular Treatment
- Clinical Trial Results: In the Phase 1b Heart-2 trial, VERVE-102 demonstrated dose-dependent reductions in PCSK9 and LDL-C, with PCSK9 decreasing by 51% to 88% and LDL-C by 9% to 62%, indicating its potential efficacy in high-risk cardiovascular patients.
- Long-term Effectiveness: Among 35 participants, the LDL-C reduction from VERVE-102 was sustained for up to 18 months post-treatment, suggesting that the drug may offer durable cardiovascular protection, addressing the urgent need for new therapies.
- FDA Fast Track Designation: VERVE-102 has received Fast Track designation from the FDA, aimed at providing new treatment options for patients with hyperlipidemia and high cardiovascular risk, highlighting its potential market value and significance.
- Future Research Plans: Lilly plans to initiate the Phase 2 clinical study by the end of this year to further validate the safety and efficacy of VERVE-102, potentially transforming cardiovascular care from chronic management to a one-time treatment.
See More
Geopolitical Tensions Impact U.S. Markets Amid Iran Deal Hopes
- Geopolitical Tensions: U.S. forces conducted defensive strikes on Iranian missile launch sites and boats, triggering volatility in oil markets as Brent crude briefly surged above $100 per barrel during Asian trading, indicating the market's heightened sensitivity to Middle Eastern developments.
- Investor Sentiment Shift: While President Trump stated that negotiations with Iran are “proceeding nicely,” market sentiment has shifted from ‘extremely bullish’ last week to ‘bullish,’ reflecting investor uncertainty regarding future geopolitical stability.
- Tech Stocks in Focus: Nvidia's CEO has demanded tighter compliance from supplier Super Micro Computer following fraud arrests in Taiwan, raising market concerns, while investor Michael Burry warned that Nvidia's current hyperscaler demand is only “temporary,” which could impact its stock performance.
- Economic Data Release: Investors are keenly watching the upcoming consumer confidence data release, along with quarterly reports from AutoZone, Cargo Aircraft Management, and Elbit Systems, which are expected to significantly influence market sentiment.
See More
Obesity Drug Market Poised for Growth
- Market Potential: The obesity drug market is projected to reach nearly $100 billion by 2030, prompting significant investor interest and confidence, which could lead to substantial stock price increases for companies in this sector.
- Viking Therapeutics Progress: Viking Therapeutics is conducting phase 3 trials for VK-2735, with promising early results suggesting potential market success; strong data could drive stock prices higher, enhancing the company's competitive position in obesity treatment.
- AbbVie's Strategic Development: AbbVie is studying a long-acting amylin analog, with early trials indicating weight loss of 7% to 9%, which could add significant growth potential to its portfolio and strengthen its market position if successfully commercialized.
- Investor Optimism: As demand for obesity drugs rises, the potential success of Viking and AbbVie may attract more investor attention, driving stock prices up, especially against a backdrop of increasing market expectations for new therapies.
See More
Weight Loss Drug Market Poised for Growth
- Market Potential: Analysts predict the weight loss drug market could reach nearly $100 billion in the coming years, attracting significant investment into pharma and biotech companies, indicating strong growth prospects in this sector.
- Viking Therapeutics Progress: Viking Therapeutics is conducting phase 3 trials for VK-2735, with promising early results suggesting it could carve out a niche in the weight loss market, and strong data could drive the stock price higher again.
- AbbVie's New Strategy: AbbVie is studying a long-acting amylin analog, with early trials showing weight loss of 7% to 9%, which could add significant growth potential to its product portfolio if successful.
- Investment Opportunity Analysis: AbbVie’s price-to-earnings ratio is currently at 15 times, down from over 24 times a few months ago, indicating substantial room for stock price appreciation, with potential for doubling in the near future.
See More
Eli Lilly Becomes First Healthcare Company to Reach $1 Trillion Market Cap
- Gene Editing Breakthrough: Eli Lilly's release of Phase 1b trial data for Verve-102 shows a 62% reduction in LDL cholesterol at the highest dose among 35 participants, with effects lasting up to 18 months, marking a significant advancement in gene editing treatments for cardiovascular diseases and potentially transforming treatment paradigms while enhancing the company's competitive edge in this market.
- Obesity Drug Market Leadership: Lilly's Mounjaro has emerged as a standout in the rapidly growing GLP-1 drug category, with projected sales exceeding $100 billion in 2023, further solidifying the company's leadership position in obesity treatment and laying a strong foundation for future revenue growth.
- Analyst Ratings Optimistic: With a 'Strong Buy' consensus from 31 analysts and an average price target of $1,211, indicating approximately 13% upside from current levels, the market reflects strong confidence in the company's growth potential moving forward.
- Technical Analysis: Eli Lilly's stock is just 6.5% below its all-time high from November 2025 and has formed a golden cross, indicating strong upward momentum; despite a price-to-earnings ratio of 28, which is above the industry average, it remains a favored choice among investors, showcasing optimism about its future performance.
See More
Viking Therapeutics Faces Competitive Pressures
- Intensifying Market Competition: Viking Therapeutics' weight-loss candidate VK2735 showed promising results in clinical trials, but increasing competition from new product launches by Eli Lilly and Novo Nordisk may impact Viking's market share significantly.
- Dramatic Stock Price Decline: Viking's stock price has plummeted from nearly $100 to below $30, reflecting investor pessimism regarding its future prospects, particularly in light of stronger competitors entering the market.
- Cash Burn Risks: With approximately $603 million in cash on hand but burning through about $114 million per quarter, Viking may face dilution risks if it fails to raise additional funds soon, further undermining investor confidence.
- Slow Clinical Progress: Although VK2735 remains in clinical trials, competitors are advancing in drug development, potentially placing Viking at a disadvantage in the market and affecting its long-term growth potential.
See More
